In the past, obtaining a bank loan required many steps, but today, simply opening a shopping app allows payment by installment. Surprisingly, some do not even realize this is a form of "credit," yet all behaviors, whether paying on time or late, will affect their financial identity in the future.
Amidst this evolving financial world and changing debt patterns, how will it affect Thai people? Thairath Money invites Dr. Latsamon Atthapich, CEO of the National Credit Bureau (NCB) to discuss the role and behind-the-scenes of the essential infrastructure that Thai financial institutions rely on.
Dr. Latsamon outlined the big picture that since 2023, Thai household debt has generally declined, but as of Q2 2026, it reached 13.67 trillion baht, a significant increase. Therefore, it is necessary to analyze the reasons using NCB's credit database covering nearly 80% of Thai household debt.
The first dimension, by debt type, shows commercial loans contracting, while personal loans for business purposes, or Nano Finance, have grown into double digits. This partly results from platforms providing loans to small online merchants, possibly because they consider merchants’ sales data when extending credit. Regarding business debt, some borrow under personal names through consumption loans such as Personal Loans (Ploan) for business use.
As for non-performing loans (NPLs), concerns remain with Ploan and hire-purchase loans for goods—not for cars, but for items like mobile phones, motorcycles, and appliances.
The second dimension, by age group, reveals younger people incur debt earlier; upon reaching legal adulthood at 20, more debt is seen, especially Ploan, unlike previous generations who typically started with credit cards or large debts near age 30 for homes or cars.
On younger people incurring debt earlier, two main perspectives arise: 1) easier credit access today, especially among those active online who use Buy Now Pay Later (BNPL), likely driving Ploan growth; 2) behaviorally, young people no longer view debt as frightening or burdensome but see it as a lifestyle choice—BNPL or 0% installment plans are spending options, and some perceive it as using future income today.
"Regarding BNPL, I see two sides. I agree regulation is necessary, but financial literacy must be strongly enhanced because today’s products are very diverse, and credit access is extremely easy. Without financial knowledge, no matter how much control or restrictions are imposed, users will still find ways around them," Dr. Latsamon said.
Given the current challenge to understand debt and improve financial literacy, Dr. Latsamon added that differing mindsets require tailored communication about debt and life planning. For example, Risk-Based Pricing (interest rates based on risk) serves as education, clearly showing which financial behaviors yield which outcomes.
"Risk-Based Pricing educates people hands-on: a good credit score—reflecting good repayment behavior—will be rewarded in life," Dr. Latsamon explained.
Internationally, Risk-Based Pricing is a practical concept where lending platforms assess credit data and behaviors to gauge risk levels. Borrowers with lower risk receive lower interest rates. In Thailand, some commercial banks have begun applying Risk-Based Pricing linked to credit scores.
A major issue in Thailand, besides financial literacy, is that most people lack a financial identity in the credit data system. Of the working population aged 20-60, over 40% have no credit information, limiting their ability to access formal credit. This motivates NCB to intensify public understanding of these matters.
Dr. Latsamon emphasized that credit information is like a "financial identity" reflecting behavior and helping access credit. From another perspective, NCB provides foundational infrastructure for the financial sector, as without factual data, stable lending in financial institutions is difficult.
NCB’s infrastructure operates on two levels: 1) the data itself, crucial to the system; 2) the financial data transmission network with over 160 members, exceeding the number of banks.
"Credit scores differ from credit data; scores are calculated from data. Both should be valued and improved by everyone to keep life moving forward and seize opportunities," Dr. Latsamon said.
Another key point is that even if one has bad credit data, the three-year retention period by law allows those willing to improve their behavior to eventually have better credit records.
Additionally, credit data is often only part of what financial institutions consider for lending. Usually, they also assess the 5Cs—Character, Capacity, Capital, Collateral, Conditions—and risk tolerance policies.
NCB must continue developing in many areas. Although the law limits data to credit-related information, Alternative Data offers many benefits, helping build credit histories for those without data and potentially increasing credit access.
Recently, NCB invited ASEAN credit bureaus to jointly study how centralized, standardized Alternative Data can improve financial access. The results will be presented at the IMF World Bank Annual Meeting alongside Laos and Philippine credit bureaus.
NCB also focuses on ongoing collaboration with regulators and members to enhance the system, such as deepening data detail by specifying loan purposes or identifying conditions affecting repayment for most people (e.g., Hat Yai floods, COVID-19) to comprehensively understand behaviors.
Over the next 3–5 years, NCB will focus on three pillars:
Finally, understanding credit information will help Thais adjust behaviors, and good credit acts as a key to greater credit access opportunities.
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